U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25992 / [May 3, 2024]
Securities and Exchange Commission v. Robert M. Thompson and Financial Freedom Foundation d/b/a F3 Mastermind, et al., No. 3:24-cv-05032-MDH (W.D. Mo. May 3, 2024)
SEC Charges Missouri Man and His Company with Offering Fraud
The Securities and Exchange Commission today filed a litigated action charging Robert M. Thompson and a private entity he controls, Financial Freedom Foundation d/b/a/ F3 Mastermind (“F3 Mastermind”) with defrauding investors in three securities offerings.
According to the SEC’s complaint, since at least early 2019, Thompson, a resident of southwestern Missouri, has marketed F3 Mastermind as a private membership group which, after investors paid an initial, and then monthly fee, offered members investments in trading programs, run by third-party operators, that claimed to generate risk-free returns ranging from 20% per week to 4,000% per year. As alleged, between early 2019 and mid-2022, Thompson and F3 Mastermind recommended these investments to investors in at least three states who subsequently invested in these programs. The complaint further alleges that Thompson and F3 Mastermind falsely stated that these programs were real and provided extraordinary investment returns with little or no risk. As alleged, F3 Mastermind members invested in these prime bank-like schemes and collectively provided at least $2 million to the third-party operators who conducted the schemes. Finally, the complaint also alleges that relief defendant Brian K. Stucki, received ill-gotten gains from the scheme to which he has no legitimate claim.
The SEC’s complaint, filed in federal court in Missouri, charges Thompson and F3 Mastermind with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206(1) and (2) of the Investment Advisers Act of 1940, and Thompson with acting as a control person of F3 Mastermind. pursuant to Section 20(a) of the Exchange Act. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and a civil penalty against Thompson and F3 Mastermind; disgorgement with prejudgment interest against Stucki; and a bar against Thompson serving as an officer or director of a public company.
The SEC’s investigation, which is ongoing, was conducted by Matthew T. Wissa and Keith Constance, and supervised by Amy S. Cotter of the Chicago Regional Office. Eric M. Phillips and Mr. Wissa will lead the litigation.